Indonesia vs Singapore taxes (2026): PE, VAT and CIT

Indonesia vs Singapore tax rates at a glance

Tax	🇮🇩 Indonesia	🇸🇬 Singapore
Income tax	Resident individual PIT: 5% - 35% PTKP baseline: IDR 54m Non-resident Article 26: 20% / treaty rate Employee BPJS health: 1% Employee JHT: 2% Employee JP: 1%	Resident income tax: 0% - 24% Non-resident income tax: 24% Employment concession: 15% or resident rates Foreign income: 0% / limited exceptions CPF employee: 20% CPF employer: 17%
Corporate tax	Standard CIT: 22% Qualifying public company: 19% Small-company facility: 11% effective on eligible profit Eligible MSME final tax: 0.5% of turnover Branch-profit remittance: 20% / treaty VAT registration threshold: IDR 4.8bn turnover	Corporate income tax: 17% Start-up exemption: Up to S$125,000 Partial exemption: Up to S$102,500 YA 2026 rebate: 50% GST: 9% Dividend withholding tax: 0%
Capital gains tax	General private-asset gains: 5% - 35% PIT / 22% CIT Listed share sales: 0.1% of gross proceeds Founder-share treatment: 0.5% additional rule may apply Land and building transfer: 2.5% of gross value Qualifying low-cost housing: 1% Crypto sales: 0.21% domestic / 1% foreign platform	Capital gains tax: 0% Crypto gains tax: 0% Share gains tax: 0% Property gains tax: 0%
Dividend tax	Domestic dividends to resident companies: 0% Resident individual dividends: 0% if qualifying / 10% final otherwise Foreign dividends to residents: Exempt if reinvested / ordinary rules Dividends to non-residents: 20% / treaty rate Foreign tax credit: Available under conditions	Dividend withholding tax: 0% Domestic dividends: 0% Foreign dividends: 0% / limited cases
Wealth tax	General net wealth tax: 0% PBB-P2 local property tax: Up to 0.3% Certain PBB sectors: 0.5% statutory rate BPHTB acquisition duty: Up to 5% Stamp duty: IDR 10,000 Income from assets: PIT / CIT / final rates	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%
Inheritance / estate tax	Separate inheritance tax: 0% Inherited assets under PPh: Generally not an income-tax object BPHTB on inherited land or buildings: Up to 5% Estate income before distribution: PIT / CIT / final rates Later property sale: 2.5% final transfer tax generally	Inheritance tax: 0% Estate duty: 0% Gift tax: 0% Probate tax: 0%
VAT / GST / sales tax	VAT: 11% effective / 12% luxury	GST: 9%
Standard GST / VAT	11% effective / 12% luxury	9% GST
Cross-border business	PE, Article 26 withholding and luxury VAT can attach to foreign companies	Territorial company tax with GST, stamp duty and withholding on some non-resident payments

Who wins on each tax

Personal income taxSingapore

Singapore's resident top rate is 24%; Indonesia's resident scale reaches 35% above IDR 5 billion of taxable income.

Corporate taxSingapore

Singapore's 17% rate is below Indonesia's standard 22% corporate income tax.

Capital gains taxSingapore

Singapore generally has no personal CGT; Indonesia uses 0.1%, 2.5% or ordinary PIT/CIT rates depending on the asset.

VAT / GSTSingapore

Singapore GST is 9%; Indonesia's VAT is effectively 11% for most goods and services and 12% on luxury goods.

The verdict

Singapore is the lower-tax operating hub. Resident individuals pay 0% to 24%, companies pay 17%, personal capital gains are generally not taxed, and GST is 9%. Indonesia taxes residents on worldwide income at 5% to 35%, companies generally pay 22%, and VAT is an effective 11% for most supplies with 12% on luxury goods.

The non-rate constraint is Indonesian substance and permanent establishment. A company incorporated in Singapore can still create Indonesian tax through a PE, local agents, management activity or Indonesian-source payments. Luxury VAT at 12% and Article 26 withholding can apply even when the invoice is issued in Singapore.

Choose Singapore for a regional HQ, treaty paperwork and investment taxation. Choose Indonesia when the customers, factory or staff are Indonesian, and model PE, VAT and withholding as operating costs rather than as optional extras.

How to read this comparison

Indonesia is a large operating market with a full domestic tax stack. Resident individuals generally report worldwide income at 5% to 35% after deductions, with the top rate applying above IDR 5 billion of taxable income. Companies generally pay 22% corporate income tax. Capital gains are asset-specific: listed-share and some transaction taxes can be 0.1%, certain land transfers 2.5%, and other gains follow ordinary PIT or CIT rates. There is no broad net wealth or inheritance tax, but land and building tax, acquisition tax and final tax on property transfers still apply. Payroll includes PPh 21 withholding and BPJS contributions.

Singapore is the lighter hub: 0% to 24% personal tax, 17% corporate tax, generally no personal capital gains tax, 0% estate tax, 0% tax on ordinary Singapore-company dividends, and 9% GST. That combination is why groups put holding companies and regional management in Singapore even when the factory is in Java.

The constraint is that Indonesian tax does not stop at the border. A Singapore company can still have an Indonesian permanent establishment if it has a place of business, a dependent agent, or management activity in Indonesia. Indonesian-source payments can attract Article 26 withholding at 20% or a treaty rate. VAT is easy to misread: the formal rate is 12%, most non-luxury supplies are effectively 11% because of the 11/12 tax base, and luxury goods use 12%. Selling into Indonesia from Singapore without modelling PE and VAT is how regional structures fail.

Choose Singapore when the HQ, IP, banking and investment portfolio should sit in a 17% and 0% CGT system. Choose Indonesia when the revenue, people or plant are Indonesian, and staff the PE on purpose rather than by accident. Treaties, transfer pricing and dividend participation rules can soften double tax, but they do not turn Indonesian operations into Singapore-source income.

Which one fits you

🇮🇩 Choose Indonesia if you're a…

Manufacturers, exporters and consumer businesses in Indonesia
Founders with Indonesian payroll and licences
Groups that can staff a real Indonesian PE on purpose

🇸🇬 Choose Singapore if you're a…

Regional holding and HQ companies
Investors who want no general personal CGT
Businesses that can keep Indonesian activity below PE thresholds

Frequently asked questions

Is Indonesia or Singapore better for tax?

Singapore is usually better on personal income tax, corporate tax, capital gains and GST. Indonesia is the operating-market choice when Indonesian customers, plants or staff are the business.

Can a Singapore company still pay Indonesian tax?

Yes. Indonesian-source payments may attract Article 26 withholding, and a foreign company with a permanent establishment can be taxed on attributable profits. Treaties can change the result, but substance and agent activity still matter.

Why is Indonesia's VAT quoted as 11% and 12%?

Since 2025 the formal VAT rate is 12%, but non-luxury goods and services generally use an 11/12 tax base, producing an effective 11% burden. Luxury goods use 12%.